This article first appeared on GuruFocus .
Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sunrise Communications AG ( XSWX:SUNN ) reported a solid trading result with 10,000 post-pay net additions and 1,000 internet additions in Q1 2026.
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The company launched the Sunrise Rewards Program to enhance customer loyalty and reduce churn.
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Sunrise Communications AG ( XSWX:SUNN ) achieved a strong adjusted EBITDA growth of 2.5% year-on-year.
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The company has formed a strategic partnership with Phoenix to offer a unique sovereign AI and cloud solution to B2B customers.
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The AGM approved a dividend for the year 2025, which has already been paid out, and the dividend is not subject to Swiss withholding tax.
Negative Points
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Q1 2026 showed a softer market liquidity, impacting sales momentum in January and February.
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The company announced a general price increase effective from August 1, which may face consumer resistance.
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Fixed consumer revenue declined, impacting overall revenue growth.
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The restructuring expenses amounted to $27.8 million, primarily due to headcount reduction.
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Service revenue trends showed a decline, raising concerns about the sustainability of stable EBITDA growth without positive service revenue growth.
Q & A Highlights
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Q: What prompted Sunrise Communications to implement a general price increase, and how have customers reacted to this change? A: Andre Krause, CEO, explained that the decision to move from selective to general price increases was influenced by rising operational costs and competitors' actions. The market environment appeared receptive to such changes. While the price increase is modest, at about $0.05 per day, it is still early in the process, and customer reactions have been generally manageable, though not without some expected resistance.
Q: How does the recent partnership with Phoenix enhance Sunrise's B2B offerings, and what makes it unique? A: Andre Krause highlighted that the partnership with Phoenix provides a unique end-to-end sovereign AI and cloud solution, distinct from competitors who rely on hyperscalers. This partnership allows Sunrise to offer a fully controlled and secure solution, appealing to B2B customers concerned with data sovereignty. The new offerings are expected to launch in the second half of 2026.
Q: Can you provide an update on the broadband net additions and the technology mix between fiber and cable? A: Andre Krause noted that broadband momentum has been positive, with fiber making up about 50% of the technology mix. The remaining 50% is comprised of HFC, FWA, and copper, with HFC being the largest component. The trend shows a gradual shift towards fiber, but no drastic changes are expected in the near term.
Q: What are the expectations for OpEx savings, and how sustainable are these savings? A: Janne Frottier, CFO, indicated that a significant portion of the OpEx savings seen in Q1, particularly in IT and professional services, is expected to be sustainable throughout the year. While some savings are due to phasing, a meaningful chunk, potentially in the mid-double-digit percentage range, will likely persist year-over-year.
Q: How is the competitive environment affecting Sunrise's pricing strategy, and what impact has Swisscom's price rise had on Sunrise? A: Andre Krause mentioned that the competitive environment remains rational but promotional. Sunrise has not seen a significant impact from Swisscom's price rise in terms of customer migration. The company continues to monitor market dynamics and adjust its multi-brand strategy accordingly, ensuring competitive offerings across different price segments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
